Concept explainers
To explain: sub questions accompanying the given table.
Concept Introduction
Cross
Complementary Goods: A complementary good is that good which is usually used in relation to another good. The cross elasticity of complementary goods is negative, implying that when there is an increase in the price of one good, the demand for another good decreases.
Substitute Goods: A substitute good is that good which can be used in place of another good. The cross elasticity of substitute goods is positive, implying that when there is an increase in the price of one good, the demand for another good increases.
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